Uflex rallies nearly 12% after giving itself clean chit post I-T dept raids

Shares of Uflex India rallied nearly 12 per cent to ₹429.90 on the BSE in Wednesday's afternoon trade after the company denied reports over alleged bogus transactions and seizure of evidence by the Income Tax department.

The packaging solutions provider has claimed that the I-T department has “not seized anything incriminating” from the company in the raid conducted for seven consecutive days.

“During the recently concluded income tax search, all stocks of raw materials, finished goods, work in process (WIP), and other assets were found to be duly recorded, and all books of accounts were found to be in order. The search teams have not seized anything incriminating,” a company spokesperson said.

Further, the spokesperson said, “UFlex Limited adheres to good business practices and the highest standards of corporate governance."

The company in a regulatory filing has also “vehemently” denied media reports alleging bogus transactions undertaken by it, seizure of evidence, irregularities running in thousands of crores and huge unaccounted income.

“We hereby state that pursuant to the searches carried on by the Income Tax dept w.r.t Uflex...from Feb 21 to Feb 27, 2023, all stocks of raw materials, finished goods, work in process and other assets were found to be duly recorded and all books of accounts were found to be in order,” the release stated.

The I-T department is yet to release a statement over the seizure during the raids on Uflex offices.

Uflex added that it shall keep the public, investors and the authorities updated in the matter, as per the applicable provisions of SEBI.

Last month, the I-T Department launched searches at several premises of the company across various states, including the Uflex head office in Noida, as part of a tax evasion investigation.

Around 60-70 premises, including the Noida-based company headquarters, in Delhi, UP, Jammu and Kashmir, Gujarat, West Bengal, Tamil Nadu and Karnataka have been covered.

Reports said the raids have now ended and the taxmen have recovered a number of financial documents and digital hardware from the searched locations.